Unique Corporate Structures: Do They Work?

About half of Denmark’s largest companies share a corporate structure that’s common for the Nordic country — a system in which a foundation holds a majority of the voting power. Alon Y. Kapen shared his insight with Yahoo! Finance on the unique corporate structure of pharmaceutical giant Novo Nordsik.

From the article:

“Founders will argue that they have a vision, and they need a period of time in which to implement that vision and strategy,” Alon Y. Kapen, partner at Farrell Fritz, told Yahoo Finance. “The studies also show that over time — that’s 5, 6, 7, 8 years over time — that utility diminishes. So, what we’ve seen is efforts to sunset these dual-class structures to no more than seven years.”

Read the full article here:

Novo Nordisk’s unique structure gives it an extra edge — and risk (yahoo.com)